Yes, I tried updating with the MS link for the .Net Framework 4.0, but I already had the newer version (v4.5?). I should mention that the OS version was Windows 7 64 bit Home Premium Edition. I have since upgraded to Windows 7 64 bit Professional version. Not sure if that would have made a difference. However it does help with using the Windows Backup and Recovery from a network location (the wdmycloud device).
I opted to using the Win7 backup and recovery, since I am not sure of the details on how Smartware behaves to maintain a backup. The Win7 backup reduces storage by only backing up new or changed files after the initial backup.